Flags/Pennants all around ... can this lead to another small upmove
Sensex Technical View :
Sensex
bounces back sharply from the momentum trendline which was around 10700
and is now in striking distance of the recent highs of 11370.
The
flag range is almost 600 points which implies 2-3 sessions above
11350-11400 could lead to a similar move. Possible targets 11650/11900.
Lot
many global indices are similarly shaped and some have broken above the
March 2nd week high ( similar to Sensex 11370 ). A small breakout move
in the week could be witnessed in many global indices.
The
only concern is the no of sessions in the flag are less which is a good
scenario for a strong trending market but currently we may still be on
the pullback move of the entire downfall from 21k-8k. So one needs to
be purely short term in nature as markets have already given a sharp
move.
Stocks to watchout for :
Grasim shoots up. Adani does tgts. Mundra still good chart posted below. TRIL breakout and GDL a pullback move.
Lot
many charts are seeing flag/pennants patterns which if broken could
lead to a move similar to the flag size. HDFC Bank , LnT , HDFC Ltd,
Reliance Infra and many more in the midcaps. So such a breakout has
many options to be traded but keep a strict trading policy of small
stops and booking at targets and trailing.
The
flag breakout trades have to be very quick and supported with volumes
and in some of the cases we might see whipsaws so be nimble footed.
Mundra
Port , LnT , Kingfisher Airlines technical chart posted and many more
do look similar but have discussed only a few out here.
Technical
trackers can check for similar patterns in other stocks namely Orchid
Chemicals , JP associates , Sesa Goa, Ashok leyland some fertiliser
and sugaar stocks....
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